SEC to focus on AI, private assets and tokenized securities in 2027 Wall Street examinations

On October 23, 2026, the U.S. Securities and Exchange Commission published its fiscal year 2027 examination priorities, targeting artificial intelligence, private funds, and tokenized securities across 34,000 registrants. Adopting Trump administration terminology from Executive Order 14434, the SEC uses the term 'super intelligence' to examine AI risks in trading, compliance, and deepfake threats, while scrutinizing private credit and tokenized asset clearing.

SEC fiscal 2027 examination priorities

• ▪SEC Division of Examinations Director Keith Cassidy stated that the examination program uses risk assessments to adapt to evolving market conditions and target areas of greatest impact.
• ▪Cryptocurrencies were omitted as a standalone examination priority category for the second consecutive year in the SEC's fiscal year 2027 examination priorities report.
• ▪The SEC's Division of Examinations oversees more than 34,000 registrants, including investment advisers, broker-dealers, investment companies, clearing agencies, and transfer agents.
• ▪The U.S. Securities and Exchange Commission's Division of Examinations published its fiscal year 2027 examination priorities on October 23, 2026.
• ▪SEC Chairman Paul Atkins stated on October 23, 2026, that examinations provide critical insight into emerging risks, evolving business practices, and market developments across the financial system.

Tokenized securities oversight

• ▪In October 2026, an OKX and Intercontinental Exchange joint venture filed to launch a platform offering tokenized shares in more than 60 U.S.-listed companies.
• ▪The SEC included tokenization of securities alongside Treasury clearing reforms under market infrastructure risks in its fiscal year 2027 examination priorities released on October 23, 2026.
• ▪In March 2026, the SEC approved a rule change allowing Nasdaq to trade securities in tokenized form.
• ▪The SEC's fiscal year 2027 examination priorities list tokenization under clearing agency focus areas and Regulation Systems Compliance and Integrity oversight alongside default management and securities lending.
• ▪On September 17, 2026, the SEC granted qualifying tokenized securities venues a five-year conditional exemption from certain Exchange Act requirements to facilitate tokenized stock trading.

Super intelligence regulatory scrutiny

• ▪The SEC warned in its fiscal year 2027 priorities report that malicious actors are deploying advanced artificial intelligence to execute automated phishing campaigns and generate deepfake audio and video.
• ▪The SEC designated quantum computing as an emerging technological trend under Regulation Systems Compliance and Integrity examination focus areas in its fiscal year 2027 report.
• ▪SEC examiners will evaluate financial institutions' deployment of advanced artificial intelligence tools in trading algorithms, automated investment advice, cybersecurity defenses, and back-office compliance operations.
• ▪The SEC explicitly included super intelligence and advanced technologies in its fiscal year 2027 examination priorities to evaluate their impact on market operations, compliance, fraud prevention, and investor protection.

Private assets retail access

• ▪The SEC prioritized examinations of private funds and private credit in its fiscal year 2027 priorities, focusing on investment advisers' fiduciary duties, fees, expenses, and asset valuations.
• ▪The Trump administration moved in 2026 to expand access to private equity and private assets for retail investors and 401(k) retirement savings plans.
• ▪Financial market critics warned that private assets carry heightened risks for retail investors due to complex fee structures, valuation difficulties, and illiquidity preventing immediate cash redemptions.

Trump administration terminology mandate

• ▪The SEC created a Super Intelligent Task Force in August 2025 and appointed Valerie Szczepanik as Chief SI Officer to oversee technology innovation, adoption, and governance across divisions.
• ▪Executive Order 14434 initiated a 60-day window ending in late November 2026 for the White House to draft federal legislation redefining artificial intelligence in statutory federal law.
• ▪President Donald Trump signed Executive Order 14434 on September 29, 2026, directing federal agencies to adopt the terms Super Intelligence and SI instead of Artificial Intelligence and AI in non-statutory documents.
• ▪The National Institute of Standards and Technology adopted the Super Intelligence terminology mandated by President Donald Trump's executive order.